Crypto trading shooting up - what are the best platforms for cryptocurrency trading?

Crypto trading has been forecasted to witness an inspiring growth in the coming months. The market is lying low for a while due to the recent crash- but experts have predicted signs of growth by the end of the year. Investors have started to make the most of “buy the dip” situation so that they can churn in high yields from trading the coins after a few months. The exchanges, the best platforms to trade cryptocurrency, witness around $1.9 billion worth of trading volume per day on average. If you too are aspiring to join the crypto trade bandwagon, you would have to create a trading account with one of the best platforms to trade cryptocurrency.

The post below will shed light on the different kinds of best platforms to trade cryptocurrency, steps to start trading, as well as pro tips to follow for successful trading in crypto.

Different kinds of crypto trading platforms

When it comes to the best platforms to trade cryptocurrency, there are 3 main places to choose from- Centralized crypto exchange, Decentralized crypto exchange, and P2P crypto exchange. As of June 2022, there are around 600 cryptocurrency exchanges all across the world.

Read more: What You Should Know About Bitcoin and Ethereum Trading

Centralized crypto exchange

A centralized crypto exchange is and always will be one of the best platforms to trade cryptocurrency.

The “centralized” aspect of the exchange implies that the platform is owned and operated by one single centralized authority. The exchange acts as a Custodian of the funds stored and traded through the exchange, and exercises control over private keys of users.

As a custodian of user funds, these best platforms to trade cryptocurrency shoulder the complete responsibility of security of user funds. These platforms are usually regulated bodies and hence are considered to be the best platforms to trade cryptocurrency by the institutional traders. Users have to go through an elaborate KYC and related verification process to register with these best platforms to trade cryptocurrency.

Also, these best platforms to trade cryptocurrency assure high trading volume and high liquidity.

Decentralized crypto exchange

If you don’t want to go through the complexities of detailed account verification, then decentralized exchanges are one of the best platforms to trade cryptocurrency for you.

Unlike centralized exchanges, the decentralized counterparts do not operate under a centralized authority. Rather, these best platforms to trade cryptocurrency have been developed on decentralized infrastructure. Also, it’s a non-custodial platform where traders will have complete control over private keys.

A decentralized exchange somewhat serves as a P2P trading exchange that facilitates anonymous trading. But, remember, a decentralized exchange and P2P exchange is not the same thing.

Read more: How do you convert crypto to fiat?

One of the best aspects of these best platforms to trade cryptocurrency is that they charge lower fees compared to the centralized counterparts. Decentralized exchanges also allow traders and investors to store funds in separate wallets, as per their preferences.

P2P crypto exchange

P2P crypto exchange is often used interchangeably with decentralized exchange since both of them facilitate Peer-to-Peer trading. Also both of these best platforms to trade cryptocurrency have been built on decentralized infrastructure. But, P2P crypto exchange allows direct trading where buyers and sellers get to communicate directly with one another. On the other hand, decentralized exchanges enable anonymous trading between buyers and sellers.

In a P2P exchange, sellers can post ads citing pricing, discounts, and offers. Unlike other crypto exchanges, these best platforms to trade cryptocurrency allow flexible pricing. Another major advantage of these best platforms to trade cryptocurrency is that they accept crypto traders from all over the world. This free globalized approach leads to high trading volume and high liquidity opportunities for traders on the exchange.

Steps to start trading on crypto exchanges

●        Choose a reliable exchange from the best platforms to trade cryptocurrency

●        Submit personal details, government identity proof, and complete KYC for the verification process

●        Register and open trading account

●        Choose payment option to fund the account

●        Buy your chosen crypto

●        Decide how much amount to store and how much to invest immediately in trading

●        Transfer the funds to be saved in your chosen storage wallet

●        Decide on a crypto trading strategy and start trading

 

Crypto trading through P2P exchanges

●        Sign up with a reliable P2P exchange from the best platforms to trade cryptocurrency

●        Submit personal details, government identity proof, and complete the verification process

●        If you are a buyer, look for highly rated sellers of your chosen coin

●        Communicate with the seller and decide on a price

●        If both of you have agreed on the price, choose payment method and pay the amount

●        The exchange will store the reserved coins in its escrow wallet

●        You will get the coins once the seller confirms the payment

●        You can sell them off when the market rises upwards for good profit

●        If you are a seller, you will have to create account with these best platforms to trade cryptocurrency

●        Then, you will submit ads about your offers

●        Look for suitable buyer profiles and contact them

●        If the  buyer agrees to your price, finalize the trade

Tips for cryptocurrency traders

Study different trading platforms

If you are looking for the best platforms to trade cryptocurrency, don’t just sign up with the very first exchange you come across online. you should take time out to study at least 5-6 top-rated or best platforms to trade cryptocurrency.

There are a lot of factors that you have to check before putting your hard-earned money into something as dramatically volatile as crypto. From security measures to trading fees to payment methods, to asset list- there are several aspects to consider before zeroing in on one exchange.

Read more: Which Cryptocurrency Will Be the Next Big Thing in 2022?

If you are going for P2P exchanges, make sure your chosen platform works with thoroughly verified merchants only.

Be careful about your trading strategy

Not all strategies work for every kind of trader. For example, the margin trading strategy is especially great for veteran traders and not exactly for beginners. According to experts, if you are a beginner, it’s better to start with day trading. The best platforms to trade cryptocurrency  usually allow traders to try out a wide range of trading strategies.

Opt for stop loss

Stop loss is a tried and tested risk management protocol that allows traders to set a particular selling price in advance. While stop loss might prevent from taking advantage of sudden drastic surges in coin prices, it also eliminates risks of huge losses when the market tanks down to an incredible low.

Last but not the least, make sure to monitor the trading market regularly to stay abreast about the constant ups and downs in the extremely volatile crypto market.

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